New EC proposals will affect agriculture

The European Commission is preparing a slew of new proposals that will effect
agriculture production across the European Union's 27 member states during what
is called the "CAP Health Check," set to begin in 2008.

In the draft document of the EC's plan, seen by www.AllAboutFeed.net, several
policy plans are set out to simplify and expand upon the major overhaul of the
EU's Common Agriculture Policy (CAP) agreed to in 2003. One of the major tenants
is the streamlining of the Single Payment Scheme to take into account all 27
member states rather than the 15 member states the system was designed
for.

According to the draft communication, "As more sectors have in the
meantime entered into the SPS and as experience has been gained with operating
the system, certain implementing decisions and rules seem unnecessarily rigid
and complex."

The cross-compliance requirement introduced in 2003, which
requires producers receiving aid under the CAP to comply with a range of
environmental standards, will also be streamlined during the "Health Check." "In
order to remain an appropriate tool, cross-compliance needs to reflect society's
demands and must strike the right balance between the costs and benefits of any
requirements," the draft communication says.Further decoupling of payments
as well as further reducing the kinds and amounts of market intervention is also
expected during the "Health Check."

New proposals linking agriculture
with climate change mitigation and sustainable water use will also be introduced
in the coming months. The EC will unveil the communication on Nov. 20 with
legislative proposals expected in May.